May 17, 2020
Dale Benton

Nickel Mines lists on ASX with $200 million IPO

Australia
mining
Indonesia
Nickel
An Australian nickel producer has completed one of the biggest IPOs on the ASX, officially entering the global nickel market.

Nickel Mines has raised A...

 An Australian nickel producer has completed one of the biggest IPOs on the ASX, officially entering the global nickel market.

Nickel Mines has raised A$200 million in an IPO, which values the company at around A$485 million.

The IPO is one of the largest offerings on the ASX in the last 12 months.

 Nickel Mines is looking to become a globally significant, low-cost producer of Nickel Pig Iron which is a key ingredient for the production of stainless steel.

Its key asset is the Hengjaya Nickel Mine in Indonesia, which is a large tonnage, high grade saprolite deposit located in the Morowali Regency of Central Sulawesi.

Nickel Mines holds am 80% interest in PT Hengyaya Mineralinda (which subsequently holds 100% pf thee mine), with the remaining 20% owned by an Indonesian partner; the Wijoyo family.

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In 2014, the Indonesian Government issued a ban on the exploration of unprocessed minerals, which forced production at Hengyaya to cease.

Last year, Nickel Mines signed a $200 million collaboration and subscription agreement with Shanghai Decent Investment, creating the Tsingshan Collaboration.

Under the agreement, and following a further offtake agreement signed late last year, Nickel Mines will supply around 50,000 wmt per month and  2 RKEF lines 1.5mt per year.

 

 

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